Craft-beer showdown in N.C. moving toward trial, subpoenas issued

A battle over North Carolina's craft beer self-distribution cap appears headed to the courtroom.

A N.C. Superior Court judge denied on Tuesday motions to dismiss a case fighting to raise that 25,000-barrel cap or to reassign the case to a three-judge panel.

That means a lawsuit filed by Olde Mecklenburg Brewery, NoDa Brewing Co. and the Craft Freedom against the state of North Carolina can continue.

Lawyers for the craft brewers issued subpoenas to various distributors following the court’s decision. It seeks information about those distributors’ political contributions as well as communications involving their lobbyists.

No timetable was immediately available for when the case could go to trial.

At stake is the ability of Charlotte’s largest craft brewers to increase production and continue to distribute their own products — without having to hand over rights to private distributors if they sell more than 25,000 barrels.

The lawsuit alleges the state is artificially suppressing economic growth through two unconstitutional laws — the distribution cap and franchise law.

“We are grateful for the Court’s ruling today. Today’s victory upholds the basic principle that the government cannot enrich one group of private parties at the expense of another,” says OMB Founder John Marrino in a statement.

He adds that small craft breweries have been punished as well-connected business owners “have greased the skids for years.”